Investment Process

Investment Process

Building on over 20 years evaluating corporate environmental performance at IRRC and LGA, LGA has developed a systematic process for creating large cap sustainability investments within the constraints of institutional fiduciaries.

Quantitative
Research
  • Fundamental research into which Environmental, Social, and Governance (ESG) factors influence risk adjusted returns to shareholders
  • Development of investment models that embody results of research and capture relevant market features
Integrated
Sustainability &
Financial
Analysis
  • Evaluation of alternative sources of ESG information
  • Extraction of environmental information on benchmark universe
  • Integration of financial information and environmental information into hybrid metrics
Portfolio
Management
  • Review of qualitative information to determine which companies are best placed to meet tomorrow’s challenges by virtue of their
    sustainability programs across the entire supply chain (including partners and customers)
  • Selection of sustainability leaders based upon integrated assessment of the company
  • Determination of weights based upon combination of corporate characteristics and market structure
Rebalancing, Trade,
Execution,
& Risk
Monitoring
  • Assessment of portfolio risk relative to benchmark and key characteristics (tracking error, dividend growth, ROA)
  • Institutional execution available with minority or disabled veteran-owned brokerage firms
  • Monitoring of portfolio performance
  • Replacement of holdings as more attractive alternatives are found based upon research